There are two basic types of life insurance — that is, permanent life insurance and term life insurance. You want only one of these types of life insurance; let me show you why.
Permanent Life Insurance
The first type is called permanent life insurance. It’s name is fitting because this type of life insurance stays in effect until you pass away or you stop paying the premiums to maintain the insurance policy.
Most of these types of insurance policies also have various types of savings accounts tied in with them.
The three most common types of permanent life insurance are whole life, universal life, and variable life.
At first glance, having a life insurance policy that is in effect until you pass away and getting some savings built up at the same time sounds great. But here are some general reasons why I recommend staying away from any type of permanent life insurance policy.
High costs
Most permanent life insurance policies are quite costly for very little insurance coverage.
High service fees
Insurance companies and agents make a lot of money when they sell you permanent life insurance. So it is in their best interest to try to sell you this type of insurance. All those profits and commissions are coming out of the service fees you pay with your monthly premiums.
